Boat arrivals have soared in the past 18 months, with most asylum seekers coming from Iraq, Iran, Sri Lanka, Afghanistan and Bangladesh. They make their way to Indonesia and from there head to Christmas Island, the closest part of Australian territory to Java.

They travel in boats that are often over-crowded and poorly-maintained. Several have sunk in recent months, killing passengers.

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Kevin Rudd: "Too many innocent people have been lost at sea"

Australian aid row

Prime Minister Kevin Rudd, who announced a new asylum policy last week, said Mr Abbott's proposal was no more than "a three-word slogan... Operation Sovereign something-or-other".

Under Mr Rudd's policy, asylum-seekers arriving by boat in Australia will be sent to Papua New Guinea (PNG) for processing, and those whose refugee claims are upheld will be settled in PNG, rather than Australia.

PNG will receive Australian investment as part of the deal.

However, critics have accused Australia of avoiding responsibility and passing on its problem to a developing nation.

Meanwhile, a row has broken out between PNG's Prime Minister Peter O'Neill and the Australian opposition.

On Tuesday, Mr Abbott described Australian aid to PNG as "a free gift", saying "it seems we are basically just handing over cash to the PNG government".

Opposition foreign affair spokeswoman Julie Bishop also said that Mr O'Neill had told the coalition he had "total control over the entire Australian aid budget".

On Thursday, Mr O'Neill told Australian broadcaster ABC that he was "disappointed" with the opposition.

"I don't particularly appreciate being misrepresented by others for their own political interests," he said.

Asylum policy is likely to be an important issue in Australia's federal elections, which must take place by 30 November.

An opinion poll on Tuesday suggested that the opposition coalition led Mr Rudd's Labor party by 52% to 48% after preferences.

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